Car trading company weatherwoman turnover increased in the third quarter, supported by corporate restructuring. Profitability decreased, which the company justified by the difficult market situation.
Wetter’s turnover increased to 119.6 million euros during July–September. At the same time a year earlier, Wetter’s turnover was 110.3 million euros. Following the company Inderes expected turnover to grow to 147.0 million euros.
The company’s adjusted operating profit weakened to 2.1 million euros during the third quarter. In the comparison period, the adjusted operating profit was 3.3 million euros. Inderes expected adjusted operating profit to grow to 3.8 million euros.
The company’s profit per share weakened to a loss of EUR 0.01 per share. In the comparison period, the profit per share was EUR 0.00 per share, which was also Inderes’ expectation.
The turnover of the passenger cars segment decreased by EUR 1.1 million, or 2 percent compared to July–September last year. The turnover of the heavy equipment segment increased by 7.5 million euros, or 50 percent, and the turnover of the Maintenance services segment increased by 3.2 million euros, or 16 percent.
Result warning in the background
“The efficiency measures and the review of the cost structure that were started in the spring of 2024 will continue during the coming year as well. Annual savings of five million euros are sought. It is clear that the improvement in profitability obtained through acquisitions will not occur in a short time, but Wetteri will continue to take planned actions to realize the synergy benefits. We are also developing our other operations, and we have recently launched a new service product, WetteriTurva, for which we expect strong demand”, CEO of Wetter Aarne Simula commented in the interim report.
In August, Wetteri issued a negative earnings warning, in which it lowered its guidance due to, among other things, the weak market situation and the transfer of the revenue and earnings effects of the mergers and acquisitions.
Wetteri now advises that the net sales for 2024 will be 520–640 million euros and the adjusted operating profit will be 12.8–15.6 million euros.
The company’s three-year goal is a turnover of 1,000 million euros and an operating profit of 30 million euros.
The strategy will be updated at the beginning of the year
After the review period on November 21, Wetteri said he was selling Wetteri Power Oy:n for a Swede Persson Invest AB:for. The estimated purchase price is approximately EUR 32.5 million. The price depends, among other things, on the company’s result next year. The deal is expected to be completed at the turn of the year.
According to Inderes’ assessment, the deal strengthens the company’s balance sheet significantly, but weakens future cash flow. The purchase price was estimated to be low.
Simula sees the deal as positive for shareholders.
“The automotive industry is going through the biggest change in its history and will focus on a few large players. Our goal is to grow into the largest full-service multi-brand car dealership in Finland, and this store takes us towards that goal. We see that now is the right moment to invest in the growth of the passenger car business. We will also continue to develop the heavy equipment business, for which we have excellent conditions thanks to this transaction,” says Simula in the interim report.
Due to its changed situation as a result of the acquisition, Wetteri will update its strategy at the beginning of 2025 for both the passenger car business and the heavy equipment business.